Australia’s High Court rejects Uber appeal over A$81 million tax bill

Australia’s High Court dismissed Uber’s appeal against New South Wales payroll-tax assessments after the company had initially succeeded in challenging them. The court ruled 6–1 on 4 November, leaving Uber liable for A$81 million in payroll tax for 2015–2020. Uber argued that it did not employ its drivers and that payments to them were not wages under state law.

According to The Guardian, six justices dismissed the appeal, finding that the payments to drivers were wages.

The decision concerns how the payments are treated for payroll tax; it does not itself determine drivers’ broader employment rights. The dismissal ends Uber’s legal avenues to challenge the assessments.

Why the court rejected Uber’s argument

The majority said that Uber routes riders’ payments through the company, giving it substantive control over fares before passing the money to drivers. That control allows Uber to deduct its service fee or change or cancel a fare, the judgment said, as quoted by The Guardian.

Chief Justice Stephen Gageler said several states had expanded their payroll-tax laws late in the previous century to capture revenue from contractual arrangements that disguised working relationships. He said those provisions continued to apply to participants in the gig economy.

Analysis

What comes next

The Guardian anticipated further payroll-tax liability for Uber for years after 2020, though the amount has not been established. Legal expert Celeste Black wrote in 2025 that the case would probably influence the payroll-tax obligations of companies using gig workers across Australia.

The New South Wales government called payroll tax a key part of its tax base. State finance minister Courtney Houssos said it helps fund essential services and that Uber should pay its fair share as local businesses do.